Splitgate to "usher in new era of classic games" with $100m in funding

This story about video game financing, boiled down, in 1:33 minutes.

What's the fuss?

The developers behind an innovative breakout success just earned millions in funding to "make new classic games". What does that even mean?

The situation

5 years ago, a new developer set out to create a competitive shooter that ambitiously combined the shooting mechanics of games such as Halo with teleportation from Portal. 

• What resulted was an unique game that contained esports potential, called Splitgate, that was made on a shoestring budget.
• It took some time for the game to reach the limelight, reaching mainstream success this summer.

The developer's success reached new heights after attaining $100m in venture capital funding. 

• The financial backing will go into refining Splitgate into a AAA competitive shooter to compete against incumbents in the space...
• as well as to develop new IP to usher in an era of new classic games where innovation has currently stalled - whatever that means.

Boiling it down

Many gamers are frustrated about the current state of gaming. 

• With the industry trends favouring sequels and remakes, innovation in the space has arguably deaccelerated.
• In addition, video game developers and publishers have become increasing corporatized in which more funding usually devoted to "safe bet" projects.

In order to make the games that Splitgate's developer seems to want, they will have to contend with rising game development costs. 

• Many of their competitors are billion dollar companies that produce games with budgets of up to $200 million.
• Although their recent financing round is a massive boon, it's likely they're going to need much more where that came from.

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